YOU HAVE A BUYER FOR YOUR PROPERTY, BUT CAN YOU SELL?

 A number of years ago, I offered to take on the conveyance on the purchase and sales of properties in Spain, this at reduced fees.  When contracted by a client, we would firstly negotiate my fees.  I am learning that this is not a wise move on my part.  I would then commence on the process of submitting requests for the legal documentation required.  Sellers should be aware that the law insists that the real estate companies should, amongst other things, be in possession of the vital ‘nota simple’.  Unfortunately my services are called upon usually after; the two parties, (vendor and purchaser), with the help of the real estate involved have reached an agreement.

 What can go wrong?  Most appear not to read the ‘nota simple’.  This document is crucial.  You can of course check the details of the property on the title deeds.  This document will have been drawn up and registered, when the property was previously bought, by the now would be vendor.  Many years may have passed and the status of the property changed.  It is a very common occurrence, for owners to either expand their home or change the layout of the dwelling, closing in a porch or a terrace here and there, changing the basement to provide an extra bedroom or bathroom, built a swimming pool, extended the kitchen or lounge.  

 Do not be surprised if these works, which are sometimes carried out with the use of an architect, are then never legally registered.  The owners may have even taken out a loan on the property to pay for the works.  The title holders may have unknowingly incurred a debt and now have a charge on the property.

For all the reasons mentioned above, and many more.  It is imperative to obtain an up to date simple note (and that is exactly what it is) and study it.  When I request an up to date copy, I will often find that the details of the property inscribed, (excepting for the address) will have no relation whatsoever to the property the purchaser has viewed and decided to buy.  Take note; just because a property is registered with its title deeds, it does not follow that it is legal to sell or that the promoter had a licence to build it in the first place.  This usually relates to older second hand properties but now often includes new builds.

Outcome: If the detail on the simple note does not match the property exactly, I could and have been faced with what could have been a fait accompli but has normally resulted in that I find myself, taking on extra and time consuming tasks.  It is very important to understand that property holders affected can lose the sale.  The willing buyer, who may have paid a reservation fee on your property, can now go elsewhere, if you cannot remedy the discrepancies rapidly.  Remember, that the person who is acting on your behalf and in this case myself, will now be subjected to all types of bureaucracy and extra expense to find the correct and legal solutions and to put these into place, allowing you to complete the transaction.

Anyone who is considering placing a property on the marketplace should be aware of all these facts, before walking into the first selling agent’s office.

SELLING AN OLDER PROPERTY

Lawyers of purchasers of properties in Spain, will now amongst the other documentation, ask for a certificate of first licence of occupation.  This is normally available with some hard work, from your local town hall.  Information for older properties will not be available on the computer systems but in one of the hundreds of old archives.  If this relates to your property, you will have to furnish the relevant planning department of a history of the property going back to when and by whom it was built.  There will also be cases that some properties will have been built, without obtaining this licence.

EUROPEAN DRIVING LICENCE AND THE SPANISH VERSION

There was some panic on the Costa, as expatriates read various irresponsibly written articles, which were recently published in a few of our English language newspapers.  These apparently informative articles, with titles such as; ‘New European ruling,  a medical certificate must accompany your European driving licence to legalise the permission’  One of the authors was either lethargic or solely interested in sensationalistic titles, obviously without checking his or her information,  readers were provided with a link which lead them to the British embassy website.  Sigh of relief?  No wait for it, this link was supplying useful information from DVLA.  This is handy if you are living in the UK and you are seeking information regarding your British driving licence.  

Whatever the rules from Europe, Spain or any other European countries, the facts are confusing. Trafico have had to do their homework but do not appear to have the solution.  They too suggest that there is a law which agrees with the health test.  Until there is some logical and consensual information, my suggestion is that you either continue with your present licence or, (as the Spanish law states) ‘residents in Spain, must conform to Spanish laws’ this taken literally means, changing your permit for the Spanish equivalent.

Changing you licence is a simple process.  A Spanish model is very useful both relieving you of any problems with the traffic police and as an additional form of identity.  For those using addresses in the UK to continue to illegally renew their licences in the UK will find that this avenue will in time, be closed to them.  Please note; the official medical testing centres, will only provide you with a medical certificate valid for three months, this (where necessary) used to exchange your licence.  You will not be provided with a certificate for five or ten years. This is only available with a Spanish licence.  For those who have already taken a medical test, please check at the bottom of the certificate where you will see printed ‘caducado en tres meses’ (expires in three months).

NO LOSE SITUATION FOR LAWYER'S IN SPAIN

We had until a few years back, experienced long periods of what was commonly known as the second property boom.  Besides criminal and domestic affairs, Spanish lawyers were inundated with work.  Their potential clients were buying off plan, on plan and even no plan properties.  Then, the crisis was suddenly upon us and the need to employ legal assistance dried up for a while.  

Expats in Spain forum.

During this period, attorneys were still making a decent living, most reverting back to the type of cases that they had graduated from various universities to perform.  With the slump in the property market there was now a glut of unfinished, unpaid for and even illegal properties on the market.  

Many of the promoters and builders eventually disappeared.  Some were to commence building in other countries.  Others went underground for a while.  Several went bankrupt, only to start up again with new companies.  Only the minority, ended up in the courts. 

The dreadful news, that many purchasers were not going to obtain the properties, which were rightfully theirs, brought back the queues to the doors of the same lawyers who had acted for them in the past.  They would now be responsible for presiding over the claims to be put into the courts.  This, in order to try to recoup the massive payments made on the same properties, which they had assisted their clients to purchase in the first place.  These dwellings had either not been allotted to the rightful owners, completed, or were about to be embargoed by the banks.  For these very reasons, it has been a no lose situation for lawyers in Spain.

A RESIDENT IN SPAIN ASKS: COULD I BE EXEMPT FROM PAYING ANNUAL TAXES?

Numerous residents will remember that since they first bought their residence in Spain, they were advised to submit annual tax declarations. Most have dutifully paid these taxes, which were seemingly due for years. If you are one of the lucky few who had received correct advice, you will be aware that you do not in fact due to pay these duties. Those who have been paying resident tax should make a thorough investigation on the matter.

The general rule is that, pensioners, whose Spanish homes are their habitual and only abode, earn a pension not exceeding approximately twenty thousand euros a year and have no savings should be exempt. There are of course exclusions to this rule. One of these exceptions appears to be treating some pensioner’s unfairly. If your pension for example; does not exceed fifteen thousand a year but is obtained from two sources you will be liable to pay the annual resident tax.

I suggest that you do not use the above as a general rule as each person’s circumstances differ. For pensioners especially it is important that if you have not done so, that you should complete and submit one tax declaration to see if you are exempt. If this is the case, make sure you obtain a certificate from your tax office stating that you are a tax resident. Not doing so will complicate matters when either selling your property or on the death of a spouse. The regional government will retain funds on the sale of your property or charge a higher percentage of inheritance tax on the demise of a partner.

SPEEDING FINES

A couple from the UK, who hired a vehicle to visit a sick son in Spain, have incurred over 2.000 euros in speeding fines. The demand for the money was received at their UK address. The problem occurred when they lent the vehicle to a friend who did not respect the speed limits.

Please take note that if you consider loaning your vehicle to a third party, that you will be responsible for any fines or accidents perpetrated by the person you may have trusted to drive your vehicle. You will only be exempt from the responsibility of accidents if the person driving is mentioned on your insurance certificate.

Spain, Is Everyday Living Becoming More Expensive?

The above title tells of the type of issue which concerns the expatriate retired and employed community.

The governments, who are in need of topping up their reserves, are increasing costs on anything they can.  This includes the recent increase in the cost of our electricity supply. The order allowing the increase is dated the first of April.  Purchase taxes on second hand properties have also gone up, thus ensuring that the sale of such properties becomes ever more expensive. Many expatriates are concerned with the possibility of losing some health care facilities, 

The tax authorities are looking in-depth at both residents and nonresidents alike, who are not carrying out their obligation and presenting their annual tax declarations. Countless restaurants are increasing the prices on their menus. Petrol prices have been at their highest yet and IVA went up increasing everything we have bought; this includes the price of all our services.   

With the removal of subsidies from almost five hundred common prescription medicines, it may be time to look for alternatives. Talk to your doctor about using tee tree oil to alleviate mosquito and insect bites. A fantastic natural remedy for thousands of skin ailments including athlete’s foot and fungi types of skin complaints.

It is time to watch our pennies.  Start searching out the bargains.  It can be cheaper to travel long distances by coach instead of driving, at the same time taking the strain off the journey and allowing you to enjoy the vistas. Now may be the time to take a trip up the coast and take advantage of the many bargains available in the larger towns.  For those lucky enough to have their ‘sixty five card’ check on the internet, and find the free or specially priced entries into museums art galleries and theatres.

Call up the government controlled Paradors and see what they are offering.  Some of these hotels are located in beautiful castles or listed buildings.  Those who receive their pension in sterling have further advantages. An occasional trip to shop in Gibraltar, treating yourself to that British product you swore you had given up when you went native.  Use your credit card instead of cash if your earnings are in euros. This way you will get the best exchange rate.  Petrol and diesel is still a little cheaper and as you are there anyway.  The queues appear to be back to normal after the aftermath of the skirmishes brought on by royal visits and fishermen’s rights. 

Make sure that you are availing yourself of the reductions offered to residents on their annual rates (IBI) bills. Talk to your town hall and find out about free classes and anything else available as a ‘freebie’  If you are over sixty,  call into the ‘Gabinete Geriatrico’ and you will discover that there are numerous free health checks available to the over sixties.  Still have the old water heaters?  Pay to have your gas supply revised. It is surprising how much you can save due to the correction of leaky connectors, not to mention the dangers of these faulty fittings.

How long have you had a contract with the same mobile phone company?  Check your points and with these, either treat yourself to one of the free latest models now available, with almost everything you need; your emails, camera, internet browsing, and free messaging.  Talk to other service providers who offer you not only new phones but cheaper tariffs to get your business.  It may be wise to go to a shop to enquire what is on offer.  Check that you are being told the truth, no hidden charges etc.

Have a morning going to all your local banks and see if you can get a better deal. For example many banks offer ‘no charge’ accounts. That is if you either pay your self employed contribution via their branch or have your pension transferred to the same. Are there many expatriates living in your community?  Ask to have a communal satellite for all English language channels.

Pay a small sum to obtain tax advice.  You may be paying more than is due because you are used to having your tax returns mimicking anterior years. Are you told to provide pension certificates and also receipts for all types of expenditure during the previous years?

Pensioners, please remember that you are entitled to cheaper electricity consumption charges and telephone rental costs at literally a few euros. Scour through local newspapers for bargains

Today I had an anxious call from a family of holiday makers who found that their car was not where it was parked. They had parked with two wheels on the kerb. This is illegal. If it had not been a rental car, they may have escaped being towed away. They could not make themselves understood so called me. I located their vehicle. Took them to the location where the vehicle was impounded. Cost to them for the tow truck, sixty eight euro (luckily avoiding a fine)

On a lighter note, summer is here and you may consider showering on the beach. Don’t use your shampoo and soap, as you may find yourself in hot water!